Annual Improvements 2012-2014 Cycle

The Interpretation Committee was asked to clarify the applicability of the Amendments to IFRS 7 Disclosure-Offsetting Financial Assets and Financial Liabilities issued in December 2011 to condensed interim financial statements.

The Exposure Draft ED/2013/11 Annual Improvements to IFRSs 2012–2014 Cycle published in December 2013 (the ED) includes a proposal to clarify that the additional disclosure required by the amendments to IFRS 7 Disclosure–Offsetting Financial Assets and Financial Liabilities (‘Amendments to IFRS 7’) is not specifically required for all interim periods. However, the additional disclosure is given in condensed interim financial statements that are prepared in accordance with IAS 34 Interim Financial Reporting when its inclusion would be required by the requirements of IAS 34.

The IASB was asked to clarify the meaning of “interim periods within those annual periods” as used in paragraph 44R of IFRS 7.

There was uncertainty about whether the disclosures required by paragraphs 13A–13F and B40–B53 of IFRS 7 should be included in condensed interim financial statements that are prepared in accordance with IAS 34 and if so, whether these should be presented in every set of condensed interim financial statements or only in those in the first year in which the disclosure requirements are effective.

In May 2014, the Interpretations Committee considered the comment received on the ED and recommended that the IASB should finalise the proposed amendment to paragraph 44R of IFRS 7 as exposed.

At its June 2014 meeting, the IASB tentatively decided to finalise the proposed amendment to IFRS 7.

At its July 2014 meeting the IASB agreed that all the required due process steps have been complied with.